Imperial Logistics, a subsidiary of Imperial Holdings, has agreed to purchase a 70.0 per cent stake in Kenyan pharmaceutical preparations manufacturer Surgipharm for USD 35.00 million in cash.

Tugendhaft Wapnick Banchetti and Partners and Merrill Lynch South Africa are both advising the buyer on the deal, which is subject to usual raft of closing conditions, including the green light from certain regulatory bodies.

Chief executive of the acquiror, Mark Lamberti, stated: “Surgipharm accelerates our industry presence and relationships with pharmaceutical principals on the African continent and provides an excellent platform for Imperial Logistics’ future growth in other East African markets.

“Our entry into pharmaceutical distribution in Kenya is also opportune, at a time where there is GDP growth, rising income levels and a rising middle class in the region.”

This transaction is in line with Imperial’s African growth strategy to be a significant route-to-market partner of multi-national companies in the consumer goods and pharmaceutical sectors in Africa.

Nairobi-headquartered Surgipharm was founded in 1985 and is billed as a leading distributor of pharmaceutical, medical, surgical and allied supplies in Kenya.

The company, which generates annual turnover of roughly USD 70.00 million, has more than 330 employees and supplies its products directly to the Ministry of Health, parastatals, hospitals, clinics, dispensing doctors, pharmacies and wholesalers.

Incorporated in 1975, Imperial Logistics claims to be a front-running distributor of fast-moving consumer goods, pharmaceutical, liquor, tobacco and general merchandise products.

Earlier this year, the company and LMI Holdings established a new logistics services joint venture company in Ghana, named Imperial LMI Logistics.

Imperial Logistics also bought a 55.0 per cent interest in South African bus transportation firm Itumele Bus Lines for an undisclosed amount in January.